Correlation Between Exxon and 552953CF6
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By analyzing existing cross correlation between Exxon Mobil Corp and MGM RESORTS INTL, you can compare the effects of market volatilities on Exxon and 552953CF6 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Exxon with a short position of 552953CF6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and 552953CF6.
Diversification Opportunities for Exxon and 552953CF6
Very good diversification
The 3 months correlation between Exxon and 552953CF6 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and MGM RESORTS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM RESORTS INTL and Exxon is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Exxon Mobil Corp are associated (or correlated) with 552953CF6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM RESORTS INTL has no effect on the direction of Exxon i.e., Exxon and 552953CF6 go up and down completely randomly.
Pair Corralation between Exxon and 552953CF6
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 2.06 times more return on investment than 552953CF6. However, Exxon is 2.06 times more volatile than MGM RESORTS INTL. It trades about 0.08 of its potential returns per unit of risk. MGM RESORTS INTL is currently generating about -0.07 per unit of risk. If you would invest 11,583 in Exxon Mobil Corp on September 1, 2024 and sell it today you would earn a total of 213.00 from holding Exxon Mobil Corp or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. MGM RESORTS INTL
Performance |
| Timeline |
| Exxon Mobil Corp |
| MGM RESORTS INTL |
Exxon and 552953CF6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and 552953CF6
The main advantage of trading using opposite Exxon and 552953CF6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, 552953CF6 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 552953CF6 will offset losses from the drop in 552953CF6's long position.The idea behind Exxon Mobil Corp and MGM RESORTS INTL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 552953CF6 vs. Patterson UTI Energy | 552953CF6 vs. Helmerich and Payne | 552953CF6 vs. Delek Drilling | 552953CF6 vs. AKITA Drilling |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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